Challenger Gold (CEL) Q1 2025 TU earnings summary

Executive summary

• Mineral Resource Estimate at Ecuador projects doubled to 9.1 Moz AuEq, positioning assets among the largest undeveloped gold resources in South America.

• 6.9 Moz AuEq attributable to the company across El Guayabo (100%) and Colorado V (50%) at 0.50 g/t AuEq.

• Progress at Hualilan Gold Project in Argentina with final open pit mine design and mining schedules completed for three key pits.

• Strategic options for Ecuador assets include TSX listing, strategic sale, or farm-in partnership.

• Appointment of Eduardo Elsztain as Non-Executive Chairman and Ubirata De Oliveira as General Manager Operations for Hualilan.

Financial highlights

• Exploration expenditure for the quarter was $2.9M: $2.6M in Argentina (including $520k for surface rights) and $0.3M in Ecuador.

• Administration and corporate costs totaled $1.4M, including $150k for a terminated IR mandate and $271k for Toll Milling PFS.

• US$2M (A$3.2M) access fee paid under the Toll Milling Agreement.

• $240k in Directors' fees paid during the quarter.

Outlook and guidance

• Pre-Feasibility Study (PFS) for Toll Milling at Hualilan nearing completion, prepared under both JORC and NI 43-101 standards.

• Monetization of Ecuador assets to proceed via TSX listing, sale, or partnership, aiming to fund Hualilan development.

• Future exploration spend in Ecuador expected to decrease.